Reagan's 1980 campaign contacted Iranian officials behind President Jimmy Carter's back to frustrate his efforts to free 52 U.S. hostages held by Iranian radicals, a long-running crisis that some political analysts believe sank Carter's reelection hopes. The hostages were finally freed – after 444 days of captivity – immediately after Reagan was sworn in on Jan. 20, 1981.

The significance of Reagan's victory on modern American history can hardly be overstated. For instance, while Carter wanted to use his second term to press for U.S. energy independence and to secure a lasting Middle East peace, Reagan had little use for such policies and instead pushed through an anti-government agenda of tax cuts for the wealthy and deregulation of corporations.